Rajesh Exports Ltd (Rs.188.70) – Gold Powerhouse with High-Tech Ambitions, Tariff Headwinds, and a Watchful Market.

~Sumon Mukhopadhyay.

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Rajesh Exports Ltd (REL) continues to stand as one of India’s most globally significant names in gold refining and jewellery exports. With nearly 35% of the world’s gold processed through its facilities, the company commands scale few can rival. But the story today is no longer only about gold. REL is reshaping its long-term identity through two bold, high-tech ventures: a 5 GWh lithium-ion battery cell project under the ACC-PLI scheme and a ₹24,000-crore AMOLED display-fab through its subsidiary Elest. These ventures, if executed fully, place the company at the crossroads of energy storage, electronics manufacturing, and national industrial strategy.

At the same time, the global context — especially U.S. tariffs on Indian jewellery exports — has become a critical factor influencing the company’s risk landscape. In recent months, the U.S. sharply raised tariffs (up to 50% in some categories) on several Indian export lines including jewellery, placing renewed pressure on exporters in this segment. For REL, whose legacy business depends heavily on external markets, this represents a meaningful headwind.

Core Performance: Strong Scale, Solid Growth:

The latest results offer a reassuring picture. REL posted consolidated revenue of ~₹1,75,212 crore for the quarter ended September 2025, marking a striking +162% YoY rise. Net profit came in at ₹104.05 crore, an impressive +128% YoY jump. The numbers reinforce REL’s unique operational scale and its ability to churn high volumes consistently. It remains virtually debt-free — a rarity in its industry — giving it balance-sheet flexibility to pursue long-cycle projects.

Retail sentiment has been mildly positive too. On TradingView, many users call the stock “a good zone for accumulation,” while Investing.com comments reflect long-term optimism. However, pockets of caution persist on platforms like Reddit, where some users highlight ultra-thin margins and the company’s historical lack of consistent disclosures. This gives a balanced but cautious community tone: optimism mixed with realism.

The Battery Cell Venture – Big Promise, Delayed Clock:

Rajesh Exports signed a tripartite agreement with the Ministry of Heavy Industries and the Karnataka government in January 2023, committing to build a 5 GWh lithium-ion cell facility under India’s ACC-PLI scheme. This placed REL among a select group entrusted with building India’s domestic cell-manufacturing backbone — a project of national priority.

However, progress has not been smooth. In May 2025, REL and other PLI beneficiaries formally requested an extension of their PLI milestones, citing equipment delays and global supply-chain disruptions. The government signalled reluctance to grant blanket extensions, raising the possibility of penalties or reduced incentives. As of today, no publicly verified commercial-production timeline exists for REL’s battery project.

In short: the commitment is massive and credible. But execution remains the missing link.

The AMOLED Display-Fab – Ambition at National Scale:

Through its subsidiary Elest, REL signed an MoU with Telangana in June 2022 to establish a Generation-6 AMOLED display-fab with an investment of ~₹24,000 crore. This would make it one of India’s first large-scale display-manufacturing facilities — a strategically vital sector historically dominated by South Korea, China, and Taiwan.

Yet, after the MoU, there have been no publicly disclosed allotment/possession certificates, EPC contracts, or commissioning timelines. Government portals list the MoU announcement, but no stamped execution documents are visible.

Thus, while the strategic intent is transformational, execution visibility remains low.

The U.S. Tariff Impact – A New Macro Headwind:

In late 2025, the U.S. imposed steep tariffs (up to 50%) on a set of Indian goods including jewellery, gold products, and certain metal categories. For a company deeply tied to export flows, this creates:

• Margin pressure on U.S.-bound exports
• Deferral of large orders from American buyers
• Slower rotation of high-volume trades
• Incentive to diversify revenue streams beyond gold exports

This is where REL’s new ventures become strategically significant. Battery-cell manufacturing and display-fab production are domestic value-creation plays less exposed to tariff shocks. In effect, the tariffs reinforce the long-term logic of REL’s diversification.

SumanSpeaks Verdict:

Rajesh Exports is sitting at the intersection of legacy strength and future ambition. Its gold business continues to throw scale, revenue, and liquidity. The battery and display ventures offer optionality and align with national manufacturing goals. But execution timelines remain opaque — and for now, that is the single largest gap in the REL narrative.

Tariffs press the present. Technology shapes the future. Execution will decide which side wins first.